Growth in Food Business Driven by Increased In-House Demand
Seafood Business Remains Sluggish
Dongwon Industrial, the business holding company of Dongwon Group, announced on the 5th that its consolidated operating profit for the second quarter of this year is preliminarily estimated at 84.8 billion KRW, down 17.1% from the same period last year. During the same period, sales decreased by 2.5% to 2.1429 trillion KRW.
The company explained that while the food business recorded growth due to increased demand for home meals, the fisheries business was sluggish due to a decline in fish prices. Specifically, Dongwon F&B, an affiliate in the food business sector, achieved stable growth in strategic items such as home meal replacements (HMR) and seasoning sauces through business diversification. Its subsidiary, Dongwon Home Food, also contributed to performance with strong results in group catering and food ingredient supply businesses. On a consolidated basis, Dongwon F&B's operating profit for the second quarter was 28.9 billion KRW, and sales were 1.0615 trillion KRW, up 5.4% and 0.9%, respectively.
Dongwon Systems, an affiliate in the materials sector, improved profitability through an export strategy focused on high value-added products such as pet food pouches and retort pouches. On a consolidated basis, operating profit for the second quarter was 30.3 billion KRW, an increase of 18.3% compared to the same period last year, and sales rose 2.9% to 344.4 billion KRW.
Dongwon Industrial saw an increase in production volume compared to the previous year due to favorable catches, but sales and operating profit declined due to falling fish prices. On a separate basis, Dongwon Industrial's sales and operating profit for the second quarter were 246.6 billion KRW and 4.8 billion KRW, down 14.6% and 90.5%, respectively, from the same period last year. Dongwon Roex, an affiliate in the logistics business sector, saw sales increase due to new clients in the third-party logistics sector, but operating profit slightly decreased due to reduced cargo volume amid the economic downturn.
A Dongwon Group official said, "In the second half of the year, we expect the fisheries sector's performance to improve due to rising fish prices," adding, "We will focus on improving management efficiency based on a stable business portfolio including fisheries, food, materials, and logistics, while continuously expanding investments for future businesses."
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